Ind. Code ch. 6-6-1.6

in effect

Ind. Code § 6-6-1.6-1 Definitions

Sec. 1. The following definitions apply throughout this chapter: (1) "CPI-U" means the Consumer Price Index for all Urban Consumers, U.S. city average, all items, using the index base period of 1982-84 equal to one hundred (100), as published by the Bureau of Labor Statistics of the United States Department of Labor. (2) "Department" refers to the department of state revenue. (3) "IPI" means Indiana personal income. As added by P.L.218-2017, SEC.37.

Ind. Code § 6-6-1.6-2 Determination of rates; July 1, 2017

Sec. 2. (a) The department shall determine a new tax rate for the gasoline tax, the special fuel tax, and the motor carrier surcharge tax (before its repeal) to take effect July 1, 2017. The department shall determine the new rate before June 1, 2017. The new rate shall be determined by using annual factors and applying a method that is based on an annual factor being in place each year from the beginning of the period specified for each factor and that uses the resulting rounded rate for purposes of determining the following year rate change. (b) The gasoline tax index factor to be used each year equals the following: STEP ONE: Determine the year over year change in the CPI-U beginning in 2003 through 2016. STEP TWO: Determine the year over year change in the IPI beginning in 2003 through 2016. STEP THREE: Add for each year: (A) the STEP ONE result; and (B) the STEP TWO result. STEP FOUR: Divide the STEP THREE result by two (2). (c) The special fuel index factor and motor carrier surcharge tax index factor (before the repeal of the motor carrier surcharge tax) to be used each year equals the following: STEP ONE: Determine the year over year change in the CPI-U beginning in 1989 through 2016. STEP TWO: Determine the year over year change in the IPI beginning in 1989 through 2016. STEP THREE: Add for each year: (A) the STEP ONE result; and (B) the STEP TWO result. STEP FOUR: Divide the STEP THREE result by two (2). As added by P.L.218-2017, SEC.37. Amended by P.L.185-2018, SEC.2.

Ind. Code § 6-6-1.6-3 Calculation of annual index factors

Sec. 3. (a) The department shall calculate an annual index factor to be used for the rate to take effect each July 1 beginning in 2018 through July 1, 2027. The department shall determine the index factor before June 1 of each year using the method described in subsection (b). (b) The annual gasoline tax index factor and special fuel index factor equals the following: STEP ONE: Divide the annual CPI-U for the year preceding the determination year by the annual CPI-U for the year immediately preceding that year. STEP TWO: Divide the annual IPI for the year preceding the determination year by the annual IPI for the year immediately preceding that year. STEP THREE: Add: (A) the STEP ONE result; and (B) the STEP TWO result. STEP FOUR: Divide the STEP THREE result by two (2). (c) If the CPI-U or IPI for a preceding year is revised, corrected, or updated after May 31 of that year, the department shall use the CPI-U or IPI as published for the preceding year prior to revision. As added by P.L.218-2017, SEC.37. Amended by P.L.185-2018, SEC.3; P.L.159-2021, SEC.31; P.L.201-2023, SEC.107.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026